California has a "single action rule" or "one action rule", which requires those seeking to collect a debt to ultimately select one collection method against a delinquent owner. If an association forecloses on an owner and discovers there is no equity in the property, the association cannot then bring a lawsuit to recover the deficiency.

Selecting a Remedy. Associations may start more than one collection effort but ultimately select one remedy. For example, associations may lien a unit and initiate foreclosure and may simultaneously file a lawsuit to recover unpaid assessments. Civil Code §1367.4(b). However, at some point the association must elect its remedy. If the foreclosure results in a sale, the association must dismiss the lawsuit. If the lawsuit results in a judgment, the association must stop the foreclosure.

Judicial Foreclosure. If the association wants to foreclose but also wants a deficiency judgment, it must pursue judicial foreclosure rather than non-judicial foreclosure. However, a deficiency judgment may have no value if it is uncollectable. Boards should consult with legal counsel on the best course to follow.